See morning chart for 7/13/21
Upper Chart: The evidence supporting the unusual nature of this market keeps adding up... still no top but better buckle up!
Top left inset is the NYAD weekly MACD [lower half] with the SP-500 [upper half]. The MACD plot is looking like huge 'square' waves which indicates sudden, extreme directional changes with little to no transition periods. This is erratic behavior extending over several weeks and looks like it's threatening to create even more volatility going forward. A pattern in weekly breadth this volatile hasn't been seen since 2007 top and it created a large and extended pivot prior to the decline proper.
The potential for the market to take-off to the upside in sustained weekly/monthly moves similar to previous periods this year seems much less a possibility because several primary vectors we watch have hit and penetrated target zones projected from the lows around 3/23/20 so the analysis based on that evidence is that we are seeing instability and not a fresh attack up. There are new highs yet to come but they may be short-lived. The red signal line on the NYAD MACD is still in positive territory but declining. When [and if] it goes below zero on the weekly print. that is our next heads-up moment.
Lower Chart: ARMS Index speculative study: Since 1990 evidence is that major tops have occurred when weekly 200ma is below 1.161. Current level is 1.084 therefore a major top at this level cannot be ruled out and is a higher than average possibility going forward when added to all the other evidence that has been presented recently. The idea of a head-and-shoulders forming [currently- right-shoulder] is tempting.
See Critical Long-Term UPDATED 4/12/2021 Review Here
The bots will flag here when they see a top. (1/25/20, 2/20/20, 4/9/20)
This Information Is For Entertainment Purposes Only. Financial Loss Can Occur From Investing.
Our favorite go to site- McVerry Report
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